The Equitable Life Assurance Society (Equitable Life), founded 1762, is a life insurance company in the United Kingdom. The world's oldest mutual insurer, it pioneered age based premiums based on mortality rate laying “the framework for scientific insurance practice and development” and “the basis of modern life assurance upon which all life assurance schemes were subsequently based”.
At its peak, Equitable had 1.5 million policyholders with funds worth £26 billion under management, but it had allowed large unhedged liabilities to accumulate in respect of guaranteed fixed returns to investors without making provision for adverse market changes. Following a July 2000 House of Lords ruling, and failure of attempts to find a buyer for the business, it closed to new business in December 2000 and reduced payouts to existing members. The 2004 Penrose report found that the company had made over-generous payouts leading it to be under-funded. A 2007 European report concluded that regulators had focused on solvency margins and failed to consider the increasing risk of accrued terminal bonuses.
The October 2010 Spending Review by the coalition government announced compensation of £1.5Bn - above the level recommended by the review conducted by Sir John Chadwick and below the £4-4.8Bn loss calculated by consultants Towers Watson.
Read more about The Equitable Life Assurance Society: History, Guaranteed Annuity Rates, Article 65 and The Hyman Case, Aftermath of The Hyman Case, Sale of Business and Current Trading, Reports By The Actuarial Profession and FSA, The Penrose Report, European Parliament Investigation, Legal Actions By Equitable Life, Government Response and The Parliamentary Ombudsman, Government Response After May 2010 General Election
Famous quotes containing the words life, assurance and/or society:
“In all life one should comfort the afflicted, but verily, also, one should afflict the comfortable, and especially when they are comfortably, contentedly, even happily wrong.”
—John Kenneth Galbraith (b. 1908)
“There is no assurance of the great fact in question [namely, immortality]. All the arguments are mere probabilities, analogies, fancies, whims. We believe, or disbelieve, or are in doubt according to our own make-up—to accidents, to education, to environment. For myself, I do not reach either faith or belief ... that I—the conscious person talking to you—will meet you in the world beyond—you being yourself a conscious person—the same person now reading what I say.”
—Rutherford Birchard Hayes (1822–1893)
“Wine is a part of society because it provides a basis not only for a morality but also for an environment; it is an ornament in the slightest ceremonials of French daily life, from the snack ... to the feast, from the conversation at the local café to the speech at a formal dinner”
—Roland Barthes (1915–1980)